The Boards of Directors of Chemical and Allied Products Plc and Portland Paints and Products Nigeria Plc have taken a decision to merge their respective businesses in accordance with applicable laws.
This will lead to the emergence of CAP as the resultant entity in the proposed merger, according to separate statements issued on Monday.
The proposed merger is subject to the required regulatory and corporate approvals being obtained.
The respective boards of CAP and Portland Paints said they strongly believed that the proposed merger, which provides a unique opportunity to change the Nigerian paints and coatings landscape, would be attractive and value accretive to shareholders of both companies.
The statements signed by Managing Director, Chemical and Allied Products Plc, David Wright, and Managing Director, Portland Paints and Products Nigeria Plc, Bolarin Okunowo, stated that the decision to pursue the proposed merger was driven by the strategic objectives of the Boards of CAP and Portland Paints to drive growth and expansion within the Nigerian and African markets.
CAP and Portland Paints play in distinct segments, and the enlarged CAP will have a broader portfolio covering the top-end/premium decorative segment, the mid-market decorative segments as well as the industrial segment (in particular marine and protective coatings).